Bus 101 Term Paper Tqm

3120 Words Jul 22nd, 2011 13 Pages
Quality Management a Competitive Advantage in a Global Market

Total Quality Management (TQM), Six Sigma, and International Standards Organization (ISO), are three of the processes or tools organizations need to compete and give them a competitive advantage in the global market of today and that will allow them to keep up with the ever changing World market in the future. Total Quality Management (TQM) is a philosophy that says that uniform commitment to quality in all areas of an organization promotes an organizational culture that meets consumers' perceptions of quality.
The concept of TQM rests largely on five principles:
• Produce quality work the first time.
• Focus on the customer.
• Have a strategic approach to
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Organizations implement TQM by encouraging managers and employees to collaborate across functions and departments, as well as with customers and suppliers, to identify areas for improvement, no matter how small, teams of workers are trained and empowered to make decisions that help their organization achieve high standards of quality. Organizations shift responsibility for quality control from specialized departments to all employees. Thus, total quality management means a shift from a bureaucratic to a decentralized approach to control. An effective TQM program has many advantages or numerous benefits. First there are financial benefits which include lower costs, higher returns on sales and investment, and the ability to charge higher rather than competitive prices. Then other benefits include improved access to global markets, higher customer retention levels, less time required to develop new innovations, and a reputation as a quality organization. Only a small number of companies use TQM because implementing an effective program involves much time, effort, money, and patience. However, organizations with the necessary resources may gain a major competitive advantage in their industries by implementing the TQM process. There are three people who have been major contributors to the success in the implementation of the TQM process, even though each has promoted the importance of quality

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